Investment - Articles - NFU Mutual comments on tax on investments


Commenting on the introduction of a tax free allowance for dividends in today’s Budget, Sean McCann, Chartered Financial Planner at NFU Mutual, said:

     
  1.   New £5,000 tax free allowance for dividends introduced
    2.  
  2.   Anyone with shares should review their tax position
    3.  
  3.   Basic rate taxpayers could face dividend tax bills for the first time
 “A new £5,000 tax free allowance on dividends sounds great but there will be winners and losers. Basic rate taxpayers won’t be any better off. In fact, basic rate taxpayers with more than £5,000 in dividend payments will start paying tax on their dividend income.
  
 “What is clear from today’s announcement is that anyone with stocks and shares should review their investments to make sure they aren’t paying any more tax than they have to.
  
 “From next year, everyone who receives dividend income won't pay tax on the first £5,000. Basic rate taxpayers will pay 7.5% tax on any additional dividend income, higher rate taxpayers will pay 32.5% and additional rate taxpayers 38.1%."

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